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Analysis - Porter's 5 Forces

The document analyzes the competitive environment of smartphone manufacturers using Porter's 5 Forces framework. It identifies key competitors, the potential for new entrants like Huawei, supplier power, customer influence, and the threat of substitutes in the budget smartphone segment. Action items include strengthening brand loyalty, improving products, diversifying suppliers, and exploring new markets.

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57 views3 pages

Analysis - Porter's 5 Forces

The document analyzes the competitive environment of smartphone manufacturers using Porter's 5 Forces framework. It identifies key competitors, the potential for new entrants like Huawei, supplier power, customer influence, and the threat of substitutes in the budget smartphone segment. Action items include strengthening brand loyalty, improving products, diversifying suppliers, and exploring new markets.

Uploaded by

alexanderdeasis264
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Analysis: Porter’s 5 Forces

Now use the Porter’s 5 Forces analysis tool to evaluate the competitive environment of a smart phone
manufacturer.

1. Competition in the industry (Who are the smart phone competitors?)


● Realme
● Oppo
● Vibo
● Samsung
● Xiaomi

Action Items:

● Strengthen Brand Loyalty

● Focus on Local Markets

2. Potential of new entrants into the industry (Are there new competitors that are
entering the market?)

● Huawei, after a period of decline, is re-entering the 5G market with new product lines
like the Mate 60 Pro, driving its growth.

Action Items:

● Analyze the new competitors

● Improve the product


3. Power of suppliers (The smart phone requires a lot of parts and shipping material. Are
there enough product suppliers? How much power do they have over supply prices?
● Infinix, like other smartphone brands, relies on a small number of key suppliers for
essential components. It sources chips from suppliers like MediaTek and Qualcomm,
while displays may come from Samsung or LG, and batteries from specialized
manufacturers in China.
● Raw Material Price Influence: Like all smartphone manufacturers, Infinix is vulnerable
to fluctuations in the price of materials like lithium for batteries and silicon for chips,
which can affect their production costs.

Action Items:

● Develop In-House Components

● Diversify Suppliers

4. Power of customers (What kind of customer base does the smart phone have? How
much influence do they have?)

● Infinix’s customer base primarily consists of price-sensitive consumers, with a focus on


emerging markets like Africa, Southeast Asia, and Latin America.

● They have great influence because of the affordable products they sell

Action Items:

● Customization Options

● Engage Customers

5. Threat of substitute products (What are the other products customers can use
instead of a smart phone?)
● There are many competitors in the budget smartphone segment, such as Xiaomi, Realme,
Tecno, and Motorola. These brands offer similar smartphones at competitive prices, often
with similar features like large batteries, good cameras, and strong performance.

Action Items:

● Explore New Markets

● Develop In-House Components

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